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Accrual Accounting

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ACCOUNTING
Accrual accounting : An accounting method that measures the performance and position
of a company by recognizing economic events regardless of when cash transactions
occur. The general idea is that economic events are recognized by matching revenues to
expenses (the matching principle) at the time in which the transaction occurs rather than
when payment is made (or received). This method allows the current cash
inflows/outflows to be combined with future expected cash inflows/outflows to give a
more accurate picture of a company's current financial condition.
Accrual accounting is considered to be the standard accounting practice for most
companies, with the exception of very small operations. This method provides a more
accurate picture of the company's current condition, but its relative complexity makes it
more expensive to implement. This is the opposite of cash accounting, which recognizes
transactions only when there is an exchange of cash.
Accrual and commercial accounting is one and same thing.Commercial and accrual
accounting is one and same thing as both deals in double entry system. It means it deals with
both cash and credit aspect of the transaction.
Single entry system /cash accounting records only cash receipts and cash payments.
A voucher is a bond which is worth a certain monetary value and which may be spent
only for specific reasons or on specific goods. Examples include (but are not limited to)
housing, travel, and food vouchers. The term voucher is also a synonym for receipt and is
often used to refer to receipts used as evidence of, for example, the declaration that a
service has been performed or that an expenditure has been made.

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ACCOUNTING Accrual accounting : An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) ...
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